The Auditor Has a Responsibility to Review Transactions and Activities

question 39

Multiple Choice

The auditor has a responsibility to review transactions and activities occurring after the balance sheet date to determine whether anything occurred that might affect the valuation or disclosure of the statements being audited.The auditing procedures required to verify these transactions are commonly referred to as the review for:

• A) late unusual occurrences.
• B) subsequent events.
• C) contingent liabilities.
• D) subsequent years' transactions.

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Definitions:

EIS

Environmental Impact Statement, a document prepared to describe the effects for proposed activities on the environment.

NEPA

The National Environmental Policy Act, a U.S. law that mandates federal agencies to assess the environmental effects of their proposed actions prior to making decisions.

Environment

encompasses all external factors influencing an organism or community, including natural, social, and built contexts.

Federal Agencies

Organizations established by the federal government to implement specific legislation and oversee a particular area of interest or concern.